ARGENTINA OUTWARD MISSION BUILDS ON EXPORT OPPORTUNITIES

Shorthorn Breed celebrates 200 Years since first Import from Scotland
Strong Demand for British Sheep Genetics

SHORTHORNS IN THE SPOTLIGHT

Richard Saunders & Tim Riley pictured in front of the Shorthorn stand

Palermo Show, held in Buenos Aires, Argentina 20-30 July 2023 provided the focal point for the latest Outward Mission to promote British sheep and cattle genetics and identify ongoing export opportunities. With the support of the British Embassy, Department of Business & Trade (DBT) and the Agriculture & Horticulture Development Board (AHDB), the event was attended by Shorthorn Cattle Society President, Tim Riley, together with Richard Saunders on behalf of the British Livestock Genetics Consortium (BLG).

Shorthorns lead the Grand Parade in honour of their 200th Anniversary

Now in its 135th edition, ‘La Rural’ Palermo Show is renowned as an internationally important event bringing together livestock breeders and experts from around the world. It sits with ExpoInter (Brazil) and Expo Prado (Uruguay) as major hubs for knowledge exchange in the Southern Cone.

Homage to importer of first Shorthorn bull, John Miller (1787-1843)

This year saw the Shorthorn breed very much centre-stage, in recognition and celebration of the 200th Anniversary since the first Shorthorn bull Tarquin arrived on Argentinian shores in 1823, thanks to the foresight of the Scottish-born farmer John Miller.

Shorthorn Grand Champion which later sold for £12,000

L-R Richard Saunders, Kirsty Hayes (British Ambassador), Carlos Dawney (President, Argentine Shorthorn Association) and Tim Riley

Indeed, during a reception held in Tarquin’s honour at the British Embassy, Tim Riley, who runs the Stoneyroyd Shorthorn Herd near Hebden Bridge, West Yorkshire, praised the impact that the Shorthorn breed has had not only on Argentinian beef production but throughout the world, with its genetic merit a factor in the development of over 40 breeds globally.

Grand Champions in main showring on final day of Palermo Show

There was a heart-warming moment as three of John Miller’s great granddaughters stepped forward to introduce themselves and pose for photographs with Tim and Richard.

Pictured with three great granddaughters of John Miller

BEEF FOCUS

Whilst Shorthorn cattle have a firm and passionate following in Argentina, Angus nevertheless dominates beef production with crosses and purebreds combining for a 70% market share. Herefords are in second position. The north of the country, with its warmer climes, encourages bos indicus type crosses like Brangus and Braford. Despite the composite breeds indicated, on the whole Argentinian is not a ‘crossing’ culture, preferring purebred type cattle. Simmental, Limousin, Limangus and Wagyu also have distinct populations.

Meeting with Argentine Meat Promotion Board (IPCVA)

A breakdown of semen sales sees Angus (50%), Brangus (24%), Brafford (15%) and Hereford (5%). Albeit a generalization, cattle are on the whole shorter in stature, larger gutted and lacking the conformation of their European cousins, and it is not surprising that finishing off grass - as found in the large expanses of the Argentine pampas - is key here. Double muscling is seen overall as an undesirable trait and is excluded from herdbook registers.

The Argentinian beef population equates to around 52 Million head (beef and dairy combined) of which 30 Million are breeding females (heifers and cows). The 30 Million breaks down into 28 Million suckler cow/calf outfits and 2 Million dairy females.

During meetings with the Argentine Beef Promotion Institute (IPCVA) and Bovine Genetic Forum, there was mutual interest expressed to continue to exchange information and organise future Inward & Outward Missions.

A visit was held to the vast MAG (Mercado Agro Ganadero) livestock sales centre near the town of Canuelas where, on a typical market day, 10-12,000 prime cattle go under the hammer including a small number of cull cows and bulls. MAG is home to the offices of around 20 individual auction houses and provides a central venue for each auctioneer to sell their cattle to the processor buyers gathered.

La Gorina Frigorifico meat plant was also toured, an impressive facility in terms of innovation, cleanliness and animal welfare. Throughput is around 180 head of cattle per hour which sees 295,000 head processed annually. 20% is destined for domestic customers with 80% going to the export market, predominantly China (71%), Chile (12%), EU (4%), Israel (4%) and Brazil (1%). Cattle are usually processed within 4-5 days and carcase weights reflect the generally smaller frame and lower conformation. Deadweights ranging from 220kg to 360kg were typically seen at an average of around 240kg with typical age of steers at slaughter being 24 months. Large scale investment is underway in packaging and loading automation as well as in the treatment and recycling of ‘red’ and ‘brown’ waste water.

STRONG SHEEP DEMAND

Thanks to the collaborative efforts by industry at home and abroad, Export Health Certificates (EHCs) have been in place for the export of ovine semen and embryos to Argentina since 2020. There is very strong demand for UK Hampshire and Texel genetics in particular - with Charollais also in the picture. In essence, Argentinian producers want lambs which have better muscling, larger gigots and which can finish quickly and easily off grass.

Lucio Brandi judging the Hampshire Downs

Meetings were held with groups of prominent Hampshire and Texel breeders respectively to discuss their import needs.

Hampshire Down breeders (L-R) Dolores Brandi, Lucio Brandi & Juan Portela

Working together as a syndicate of 12-20 breeders, each breed would like to import a large volume of semen initially (potentially 2,000-2,500 straws) as well as embryos in due course across a range of selected bloodlines.

Pictured with Texel Association representatives Javier Aliendro (President), Daniel Ponce (Vice President) and Pablo Freire (Board Member)

It is hoped that preparatory health testing can be carried out in the UK in early autumn (September 2023) to allow sufficient time to hit the Argentinian breeding season during their autumn (March 2024 in the southern hemisphere).

Health rules around UK flocks having seven-year scrapie monitored status have now been relaxed in Argentina as well as in many (though not all) Mercosur countries so that double ARR/ARR genotyped stock may now also qualify for export. This has the potential to open up export opportunities for many more British and Northern Irish flocks.

Texel Champions appearance in the Grand Parade

There are also large populations of Corriedale and Merino sheep to be found in the southerly Patagonia region chosen for their dual-purpose ability to produce both wool and meat. One of the largest in Estancia Condor, an integrated breeding farm and processor which handles 120,000 per year, where they also AI 6,000 head annually and whose aim is to increase carcase weight by 3kg per lamb. In Patagonia, there is an opportunity for the UK to incorporate meat breeds by crossing them with existing dual-purpose ones, and expand the meat business given wool is coming under increasing pressure from synthetic fabrics.

As an aside, lamb is, on the whole, not generally found in supermarkets or butchers as the custom is to roast whole lambs (25kg l/weight or 13kg d/weight) on the traditional ‘parrilla’ barbecue on special occasions. There is, however, a large export market of bigger spec lambs to the EU, Japan and Israel among others.

There could therefore be an opportunity for knowledge exchange on how the UK deals with butchers and supermarkets for domestic consumption; if there were to be a cultural shift in lamb consumption in Argentina, there might be a bigger market for genetics from the UK. It is worth noting that Argentinians only consume around 0.4kg lamb per capita per year whilst the figure for beef is a whopping 60kg. Perhaps a long-term, game-changing opportunity for sheep in the mould of Tarquin back in 1823…

Gauchos remain an integral part of livestock management in Argentina

CHALLENGES

As in our own country, livestock farmers also face challenges in Argentina. These include drought conditions - hence the recent 2 Million head drop in cattle numbers from 54 to 52 Million - as well as sustainability and deforestation policies, alongside traceability protocols, which many of its export customers are now demanding. There can also be currency issues as permission is required from the central bank to move money abroad, with the paperwork taking up to 180 days.

Closing ceremony at ‘La Rural’ Palermo Show

SUMMARY

Despite these challenges, there is great knowledge of and respect for British genetics – thanks in part to the widespread use of social media – and unequivocal demand for UK-bred sheep. Some ovine semen and embryos have already been successfully exported since the new EHC came into force in 2020 but, with the help of forward-looking farmers and breeding companies, there is great potential to build on this further as long as players in the UK align to make the most of this opportunity.

Grateful thanks are extended to AHDB, Department of Business & Trade and the British Embassy in Buenos Aires for their support.

RICHARD SAUNDERS, 4 AUGUST 2023